Markets Hub: An End to a Fast-Moving Week

8/12/2011 12:11PM

A fast-moving week of wild markets swings draws to a close as traders ponder if the coming week will bring more calm. Plus, Europe bans short-selling, Home Depot is pressured by the lackluster housing market, how to find a vacationing broker and how the markets evaded another flash crash. (Photo: Getty Images.)

This transcript has been automatically generated and may not be 100% accurate.

... him ... but ... the momentum yesterday the holding it today ... for now and you know the very volatile week you wanna see how long the all the can they get to the closing bell what you need to know going until we can really given much information as we have ... been the markets' time I'll but I am Paul vignette I'm joined by Steven Russolillo and Brendan Conway ... hived to esteem gentlemen let me get over the market so good that we had the I'm here to topping up the pot ... listen I'm giving that of the day at the numbers that start to pour me see double hundred points so that the big number for the Dow obviously won eleven protecting encounter on pinball machine all morning I mean ... the STD apprehensive about remained as I thought was the Taleb on twenty kg LPG sending the Dow twenty ... and out of water yet so we have this volatility or even seen all week it's still here ... everything's positive today the stock over the market indexes are on a positive sign ... that support to know ... by ... volatile ... and we did today so yes so some public ... health and can start today I'm re Telcel's number was was pretty good with a little bit better than an hour and it was a positive reading so ... people where we're happy about that because the chosen people are spending even though it meant that Miss although the troubles that we've been having ... a slowing of spending and so safe that up to snuff out this is the key ... as we started off strong ... and then just as good as Research Rompuy drop down again after the consumer Coppins beacon was the lowest reading since nineteen eighty ... two is a real shock to find ... not really surprising to me considering all the trouble that we've had ... over the last few weeks I it's not surprising that the conference's done some sort ... so stocks that fell we never once in a new territory and then we added citizens receiving them to stop the yen it ... bought in Britain at ten thirty CTB and ECRI the weekly numbers come out the Economic Cycle Research Institute ... to come out with a weekly group number that Dell again we saw that ... down a little bit self again the economy is not ... it's not really going anywhere right now is different ... knowing you know I mean today I think exemplifies the trend for you have this mixed ... batch of data you get one data point it was not a correction another ... not so much ... that maybe maybe Kinder saving grace With was kind of data that wasn't that good ... today at least in terms of the Reuters Michigan survey is that average rainfall tile ... in a generally reflects what people think Isabel Ezrati insiders view to say that the rule easy Mishkin ... so ... in plain English the consumer served a you know the people say what the thinking obviously in the last couple weeks I mean people don't feel very good and ... so that's going to be reflected in that survey ... so maybe when you see the major indexes finished reading the top ... the feeling is that the best of times ending to ... our team now but certainly to your point metadata is ... today's barrier needed in an address you know and I you know overseas in Asia overnight the stocks the markets are all although they fell a little because ... the euro is up ... change things in the short selling ban European banks and talk about that with some of the river foreign medics ... from Europe to talk about that ... but when Tostenson was the French GP numbers came out and they were flat ... so now a three million tall for the core European the so-called core countries ... the economy they're not doing so well liked by worries about France in general and was the AAA rating ... French banks and the assisting in the Pakistani ... the ratings agencies came out today is not going to have been ... there still is concerned about the incenting Anido ... a part of what we get the first detox it is just this idea that ... if you have to put the short selling ban in lights as they did a ... reading of starting today ... what else are you worried about why are you doing that now it's the kind of a vote of no confidence in the markets ... so they in the short and ... beating the surety your portfolio Bank stocks isn't a plunged twenty percent today ... but that you gotta ask why regulators doing well you'd ... be at war to talk about the debt ... on future that the short side and push it down actually ... you know the ... intention let's talk about what I wanna have told you guys are the same time you get a story about how the market is handling all this volatility and the volatility ... is ... absolutely not this weekend is deftly on historical levels ... is the point that number times the Dow's ... up or down for a point every day this week and never happened before ... we look at the percentage terms you have had the so why notes the ostriches rate at four percent moves every day ... but the years that they come in all our ... nineteen twenty nine ... PM nineteen seventy knowing they aren't a down day I mean they are not good years might be named ... but the market the of the exchange's destructive they're handling it okay so far a wonderful one saving grace ... of this is that ... the survey was part of the flash crash is when all the turmoil that that happened after that ... caught the market's withstand another huge bout of volatility and is the first real test that we've had since the flash crash ... and so it will use email and when when when traders and investors are talking that they're saying is that ... the markets of all that the mob market structure the infrastructure is all but really well ... they put in a lot of short selling restrictions and bans in trading halts them ... and these things are all supposed to make sure that the smooth out ... volatility and smooth out any ... broken trains or or or or any of them is that Rumaila had is overwhelmed ... with things that on the dollar so they would say is that there's no ... different than the first real test and the markets have seen that testing of the market structure is ... extremely well to bring him Brennan had there been glitches that they're having glitches and anyone that are most people paid to GSZ was Exxon that ... had the Hawks are you and I guess the technical term is its trading arms ... and this happens when the stock makes a sudden move of ... ten percent within a five minute period ... that happen yesterday from what we later learned was pot trade is made in error ... and so wanted to he's basically you know somebody made a mistake trading Exxon ... and they have a halt ... in this environment everyone's paying close attention to the surface things because ... you know Jesus this can happen in Exxon ... is going to happen to my stocks ... but it was a minor issue was smoothed over ... I didn't really affect stock the stock ended up five percent yesterday ... on and that that's just kind of another notch ... in the belts ... I mean it is a ... good process is this is that that that that that that that they're always going to be minor glitches or to have this year and in a regular environment in online or in an environment like this ... what what what people are saying though is that ... this is all but the market such as public much better than anticipated in with a couple of minor glitches here and there ... all the public to ... get me to my ... concerns of a concern going into next week going into the rest of the summer to September ... me up coffee in our today that that ... this is being de tester we estimate ... I think I will not fall ... I think those fears are can always there and you know that they've been here ... getting the rose dramatically after the flash crash last year ... and are still there a ... lot of traders the study team especially when you get to you know what long-term investor ... here we are you that you know high-speed traders in appeared of market stress ... are going to turn up the machines and go home ... and in so what looks like a very illiquid market suddenly has nothing going on and and ... and and you know ... that that can take the floor out from under three ... yet our ... good friend colleague think very much based in Richelieu is staying here with me ... I ... move on folks move dollar overseas in Europe has declared war on the short sellers ... is that a move that backfired though we haven't heard from Brussels Riva Froymovich ... remember you doing today ... I pray Ariad goods to bring us up to speed on what actually happened in Europe overnight with short selling ... OK when I relax my during a conference call with all twenty that a new national regulators and ... the core Dieterich youth leader at Mac ... and France Italy is being felt that it ... be that all four decided to include a ban on all short selling of financial ... as ... for all the computer for Baojun if only for the fourteenth of June in her to ... the Heita which I did that in the ballot for me that you guys are talking about really mean all week on it at work today Dr I back yet ... when out ... like that mean for spending the ... last stop working for that ... and what triggered the thing is ... it happening I triggered for first thing that they're ... very negative ... territory ... now ... they're buying them and ... of course the thing and that is how long has been a lot of that ... very clear ... it's right near the adjusted the big question is that we saw these bands put in place into thousandeight seeing them again now us in the U S and U S a to point ... out how effective are these are these restrictions can be I mean ... it seems like into thousandeight short selling that that was not what caused the that the price is right but it so were they affected into thousandeight and out ... of the Sporting Sports today ... by the economy is going to be effective abroad ... they and their ... I don't think that I'm the market a company that it would be very active and healing Island thing today that ... it can to provide short-term found that ... on that could affect liquidity and ... build the core problem of the crate that health and uncertainty about the financial market and that ... builder as though ... I know how long you're going to lick the Margate ... very very predictably questions ... about the ... canal ball and your questions teeth ... and ... he answers no he's not going to work in Denmark in two thousand and eight ... here in the US is not going to work in Europe ... the US was September two thousand ate it and I'm not totally lifted the ban ... bless you all know what happened in October two thousand ate the next several months until the Fed stepped into the marketplace ... stocks in Europe will go down once his ban is over short sellers do not take down healthy companies and you have to protect companies ... from short sellers is because those companies are helping my tennis brand that you know um I don't sue me I'm not a rumor monger I'm telling you short sellers do not take on helping companies is the misguided effort and you will prove to be misguided once the market ... once the ban is lifted did this but this was smooth over volatility tightening its obstacles that essentially with stocks rather than the other certain muscles The without that what what Abhey the acting ... what they're talking about what that rumor mongering that they feel that there could be in the Youth of the short but they're saying that ... traders with trigger for doing it is a short position at the ... end of their regular ... and those are traditionally this is ... what's happening and ... I ... get that white the people who think that if ... they don't like it that in terms of the world with ... the ... ongoing acute care in the Iliad ... leader could hardly ... have been people in it that they be thinking ... that very day that the continued healing ... of the problem I can't play ... in the long term entry fee on that and how the debate or if you ... don't ... why didn't turn up the market not by that I think before ... you can feel the urge to think you're going on ... this is going to hear ... your box of candy sampling of the littlest one this tiny little ones ... and putting them on the one that you know structures and Iraq ... twenty think that I think that that they're looking for prepay brand among them the money and ... regulators that they need the new and regulators would not have the of cardiac people to keep ... the look ... of I think the thing that would allow the import of ... control EU after ... weekly ... yes I agree that thanks alot has been stopped by work on ... the weekend ... I hope you come back overseas posting bringing you bring ... to your USA ... the housing market not going to affect the home Depot ... MarketWatch's Andria Cheng tells all about that ... over here and there ... I ... home Depot ... the main products are related to the housing market right and so the housing market doing so well ... its effect on people with ... with baffling that's affecting this year's top performer is everything you want ... to swap ... into the housing market there's no point having a tough market ... why worry about life in the note shelling out big of an hour ... and a lot of money to get much bigger renovation project ... so if an action that might ... not want to retailers to Swat and it's ... easy to let the stock price mean Home Depot's stock is with the performance in light of the stock ... what this month if being down like they're like these that hearing Wednesday down like about homeless by twenty two percent ... and but what if we look out like a longer term but the company has sweeping making a lot the highway and into been found in the stands and cutting costs and improving customer service ... the lace so far this year they're actually outpaced the gimpy top right below ... analysts on the ITA ... Dodger on Dow component Wal-Mart ... at ... their underperforming the broader markets of the Estonian ... people say that home Depot is just deeply tied to tells you and I don't think anybody to see the worst of the box flat and ... short ... I don't think anyone's forecasting the housing market to rebound anytime soon so ... what say we don't have of being redundant housing ... home Depot Stocks will perform and consultant in the stock still ... get better and can be fined up to ten for investors even if the housing market stays depress the Linhas ... whining I recently acting GeoEye visit to the company in Alliant on and so I spoke to ... their topic thing on the company's top executives so ... what ... if she'd expect different way he was like telling me at the moment accounting isn't really depend on their growth on the the terrine housing market ... because the last four years it was like about eleven billion dollars of sales that a lot of stuff ... I fell on what he's trying to do it right here at MIT and they have a lot of biking operation that we cannot hide their competition than those customs have if you go to home Depot store you talk to customers ... the biggest complaint was that I cannot find it themes are there still help ... and then they're making a lot of improvement on that like free creamy says but they ... may not like if you go to their website is the likely changes to give the light easterly outdoor eating the store they ... they're giving the employee effect this might be called the cotton for spelling words like if I get ... and how in the smartphone walking talking and then they can take you ... right you know ... right away take the outright winners were seen ... as the release of religious beefing up customer service to ... push the yen edges and there ... I know I'm home I got on the clothes and ... eight from store to store that still carry vary widely ... there are some of my area go to review its ... ghost town trying to find someone to ... notice with a great castle ... still a very ... healt store Mr. think the question though is it seems that ... the decline follows to ... overturn ... the people can sell the homes are going to try to get some of these are going to go to home Depot and Lowe's ... but they're still losing so much that when eleven billion in sales ... that that sort of the sprucing up the whole effect has had a bigger effect for the company ... what the what strangest thing is that brings in light airy saying ... yes we it with counties act and there's not like a lot of spending up to go to iTunes ... but I think the idea I like doing some of things to try to improve to sack ... ten alike ... make the sell side in our great friends that they they talk about ... the kitchen cabinet ... in the past the Holy offered the ... option where you have to replace the whole kitchen cap and ... right now instead of like okay that doing that kind of project ... elitists how you're still on the cheap kitchen doors and chores replace currently finance ... to you got to spend ... much money and on the ... in choosing thing is that on the high and the actually they don't like authentic awesome collection ... and then they are seeing ... strong demand ... the bike into the fact that that the high end were outplayed customers ... there's ... Deathly willingness to Sudan ... but ultimately alternately day or high adhered to the house ... I knew ... the housing market goes nowhere there's only so for these companies go ... anyhow we see that the biggest question in the wild card it's like you know ... yes you can grow in line with that economic growth but from that the question is can you grow up that's my ... right ... eye injury thanks to stop arm for an Encore mix of melody be a quick check the markets here are ... some in the control rooms in politics or forest was no what's going on ... Stacey Delo said the sentence all know ... Steber slow when you go back and has ... been a headline ... it's funny things like this I'd ... I joke with the locksmith without headlights on these things move ... someone shouting to him every ten minutes ... every week and a move that I want the headline ... but that it takes is being carried very wide recall ... citing Tuesday the day with them is that ... right yes yes it's funny I mean you look at the market has also been seventeen from two hundred and thirty like it's not moving ... compared with the league isn't ... moving ... he is still substantial loans and keep in mind too that a lot of EXO we've seen is that in ... the last hour of trading that's when things in the early going really really Balto so ... the privacy walls throughout the day ... anywhere from around Mallick ten thirty eleven marking time sold up to two thirty in them all the sudden about solicits picking up a little bit ... yesterday the Dow was up about I've sixty or so right and then in the last not even a last hour was the last few minutes ... we just lost a lot of those gains and still have is that the Sri sharply but not nearly ... close to the right of the last hours always volatile but this weekend when he is being even more so ... but the last two minutes of basketball in ... the lead-up to walk to the last hour of trading ... so ... watch list our tree until I can tell you ... OK look mainly in Alimta watching every hour of trading and are saying is all I can sell it to buy and sell it for you can find a broker ... the Storm gone now right that's enhanced corporate ... I can tell us why you can't buy your broker SmartMoney's Quentin patrol here ... Gordon ... dude where's my broker ... looks a good question every meal I call them on Monday particularly a holder of a group of brokers ... I e-mailed them ... and of your brokerage or or and resources my source did ... so it was interesting because a lot of brokers they've been sending out MASI Mayo they've been hosting web cost is a good way of trying to ... contact a big bunch of people at the same time ... after the financial ... crisis of two thousand and eight ... according to SmartMoney's survey ... fourteen percent of people ... customers said they were tighter change their broker ... they would supply chains are for forty four zero four zero because they were still on the with the service they are ... so this time a lot of brokers have learnt ... their lesson ... um by NGG racked up output on extra to send extra tasty stop ... BNP Paribas said they were ... in or calling people bought the beaches in the mountains from the holiday is here ... and at the circuit is the answer to his knowledge or two ... so they really haven't learned their lessons but ... the Rams on electronic it apart from a telephone ... range from about ... thirty seconds to ... formats for one particular for four minutes or ... message to give the ... performance ... of any other part is the the actual how long it takes to make trade is well on line I saw this testing not to ... buy a house that companies you on ... the day misinformation about one among the trees so ... that Bradbury from about ... three point one seconds to two ... to twenty one seconds we watch in the melody president and check e-mail were talking about guys like us to settle for one K to hear from a real ... tree REIT real Investors people of individual stocks ... who really follow the stock minute by minute day by day ... and are ... for them ... to four minutes in turn ... formats from here to return ... although commodity references and he asked us to get a lot of money right now is a huge amount of time round ... region it to their credit some brokers tell me that they've been investing a lot of people ... can best ... technology in times ... of London sometime I might talk to some of some of the brokers ... the people in out on the bones ... well some of them were trained ... for these kind of crisis situations ... Others or not they were dropped in from ... other ... parts of the company's unions that after two years Dr young guys you're enthusiastic ... but they're really there to take your call ... for naught ... in a very that's not their job yet you know you know that this one ... the concern about of whatever stands now with the eye pads and cell phones and smart The and smartphones ... how are these people not available are not easily says he has a new light ... the all of the on call excited ... to take action ... I mean what will I mean what's the ... what's the reasoning especially in a tunnel Markets Hub on this one and when someone would not be the botnet Anderson on vacation this although I mean ... these are the cousins these are a widely tracked that is indeed questions via email they're there they're super chilled ... again and again it all I can say is that in their bras and a lot of them have learned from the pots ... I think a lot of your in your apartment and a lot of brokers ... I spent a long dining on a boat and ... come to Florida Keys so they are in talks mean they know that it's a pardon and their clients are upset ... um I think what will happen is a lot of their big ... clients will get ... preference over who is ... yes the story was likely you'll be sitting on the ... right format for at other people that represent calling them from the Florida Keys and Oreos ... so ... in about half the difference ... aam ... you know I ... have one question that Sigismund all this money that you should do a survey on eBrokers TV stations on this ... gap that all units the G ... seven rated as the ways that information that the ... government tell you how many workers are granted is gonna make sure that they're on the phone on the robots when you call ... so I mean ... it when you go on vacation you like ... researchers found your mobile phone to your ... your office on I'm at the time said I saw ... none of this issue is a very simple trick that way you take your office with you everywhere you go to the Maisons low tariff on ... their very simple basic methods of making sure you are in touch her clients need you use enough to be on the phone for nearly five minutes night I was like a nasty is the only ... houses a Wendy's on the online for five minutes from birther ... have been trying to sell losing position and then trying email Atticus any some people say one that some ... workers at the back of botulism and a couple of hours I ever write ... email when Burkle Monday yesterday at nine pm I was having dinner ... and they told me in a returning my email ... so ... yet you really wanna be on the moon ... I can't think slot August already ... we're moving on its Friday may be thinking about the weekend ... bailout money will be here before you know what you gotta know what's coming up next week ... or month ARO MarketWatch and San Francisco Laura want to be expecting ... to be expected NetSuite to look anything like this week ... I have a crystal ball so I'm I'm I'm cooking not I'm or where people who have money in them I can't bring your thing I knew that that that that exciting thank them and get it done anything can and I don't think that you really want the people regain Brent and I think the answer to that of TARP will batter the death that ... the threat says I come rarely can they don't last forever and I think an entity and improve the strength of that when the last friendly had ... you know I'd be the four percent not playing friends and they really have to go back and say no pre computer era kind ... of mind and I think that the beginning of the last century fell and ... I think and if history is any guide it that's a good sign because maybe ... you know I know we we've we've we've seen a further with the volatility ... and found some of the kind of clearing mechanism that a lot of what I know I really ... had to re offend ... I the new information that the Fed about the economy about what ... you know ... that the ... worker and every word in ... Washington ... and ... I it's one very blandly I sat down and then correct didn't back and forth in the week at one hundred in one of the ... few people out there saying this is a lot of short-term bottom long-term bonds ... are nice to know the salon we saw what can we are talking to him and looking at this ... the possible use of the bottom of that ... I think people are and I are ... looking to make that calm but ... I don't know if you know one any ill wind did a day after Mathur turned down day and there was a lot of the weak ... hand and I mean I ... was typing Friday morning I don't know how I'm going and really feel at the rebirth of considering whether we can come in Friday trading so ... I'm I I think one of the movie looking for more again where we just ... Jackson is you know hundred point itself and that the dollar ... it does to you you mention of the bottom callers out that the solicitors contrary indicators when you have more more people saying that we're we're ... getting closer to bottom ... that means the public not hear about that some people who really need to be carried out in very nervous and think that were never go back up again right in the new Nevada now four months of job now will the next week who still of earnings and a lot of tech earnings big tech earnings only ... yet mean if not happy ending for me but there are a couple company on HP and Dell ... I think that if an on demand to thank the ... press reported this week that ... I'll share that there is that I found everything down in corporate high tea which led the way I think particularly if you're looking at much lower U S ... economic growth that fell ... on that I have for him and ... the family from high expectations for HP and Dell ... Offir there are a number of retail an alternate incentive individually the ... more of a short-term traders perspective can be a pretty active ... on Abercrombie and Fitch and one of them ... and that ... a few enter your Urban Outfitters ... most of the flu ... tend to be ... either actively and they would like there aren't a ... lot of fun as well as consumer spending ... I know when to meet them activity there but yet you're right they ... have an effect on ... the comparably ... you know um for the area ... and main investor sentiment toward ... the down and my twenty points to be looking for an economic reports next week ... a Credit hero on high with a profit on the housing for I have housing that with that with a sharp reversal from the last game but I think ... the thing comes out before the Inter thing I think it expectation for ... them to continue to shed some gains after a friend from ... improvement in pending home sales ... I'm a bit of the industrial ... production in the conflict but they have pretty important especially for ... something like the while my ... family found last month that back in manufacturing and ... after the Japan quake in my Sandford for the ... month low on supply chain disruptions and the like think ... would occur if the thing is that they're expecting some kind of ... a no weaned down auto production in time to get going again and that the step into the numbers ... also very high when there and ... everywhere that Stanford can't tell ... the utility on the idea of going to happen that practice and that I think this will be important but that I wouldn't affect mainly from the leafy a couple things that ... this kind of that warm either an activity that the market with the bigger story ... Laura thanks alot of the weekend by his son ... Friday finds Omaha ... it's not about Italy Allison funk before we don't wanna give you one last check on the marketshare were things are now ... than it is one thing you knew people a home in TV land there are too ... smart money is a really interesting story to try him on the show couldn't check out why the stock market is turned bipolar ... could mean you why you can really give you some and think about over the weekend ... it is sort of conclusion Ina Seno recipe is up for FrontPoint ... the conclusion Based is that ... the stock market is sick right now ... so you have to take that into consideration about what you wanted you ... think about how we can have the weekend before the weekend comeback coeliac digits we Opinion Journal for PMC Simon on the news called ... and for breaking news all day long all weekend and next week ... stay logged on WSJ's dot com ... the